Research On The Industry Selection Effect Of South Korea's Direct Investment In Shandong Province

Since economic reform and opening up.China has continuously deepened its contacts and exchanges with other countries in the world with the rapid development of global economic integration,making full use of foreign capital and technology to develop domestic economy and it has injected new vitality into the development of China's real economy.Among them,South Korea established economic and trade relations with China earlier because South Korea and China's Shandong Province lie across sea.However,although the investments of Korean merchants in Shandong Province are very large and the growth rate is very fast.Korean merchants have the problems of repeated and low-level investments in the process of direct investments in Shandong Province due to the pressure of Korea's industrial transfer and the unbalanced level of economic development of Shandong Province itself.Therefore,this text establishes four indicators to measure the level of economic development based on eight industries invested by Korean merchants in Shandong Province and analyses the impact of Korean merchants' investments on the economic development of Shandong Province systematically and comprehensively.This text is mainly divided into five chapters.The first chapter is the introduction,which introduces the background and significance of this text.After reviewing the research contents of the existing literature,I put forward the content and framework of this paper,and briefly explains the innovation points and shortcomings of this text.Chapter 2 introduces the historical process of Korean merchants' direct investments in Shandong Province.Based on the data of Shandong Statistical Bureau and Korea Import and Export Bank,the characteristics of Korean merchants'industries in Shandong Province are analyzed from four aspects:geographical location,industry distribution,investment scale and investment form.The reasons of Korean merchants' industry choice in Shandong Province are expounded from three aspects:policy factors,economic factors and industrial restructuring.The reasons for Shandong Province's industrial choice by Shang Dynasty.Chapter three theoretically analyses the impact of FDI industries on the economic development of the host country.This chapter comprehensively measures a country's economic development by four indicators:employment quantity,employment quality,economic growth level and upgrading of industrial structure.On the basis of existing theory and research,I deduces the influence path of FDI on the host country's industrial choice,and put forward the inference that foreign investment in emerging industries has a significant role in promoting the employment quantity.economic growth and industrial structure optimization of the host country,while investments in traditional industries have no significant impact on the host country.However,the entry of foreign capital will obviously affect the supply-demand relationship of the whole employment market,thus improving the quality of employment in all sectors of the host country.Chapter 4 carries out unit root test and co-integration analysis respectively through the measurement software Eviews 8.0 based on the data of Korean merchants investments in Shandong's industries from 1998 to 2017 and the indicators of Shandong's economic development and on this basis,I use the ordinary least squares method to carry out multiple linear regression analysis.The empirical analysis shows different influences of Korean merchants' investments in various industries on economic development in Shandong Province.On the basis of comprehensive analysis of all the empirical results,chapter 5 draws the conclusion that the real estate industry,financial and insurance industry play an obvious role in increasing employment,promoting economic development and upgrading of Shandong industry.Therefore,it is suggested that Shandong government should encourage Korean merchants to invest in real estate,finance and insurance industries.On the basis of previous studies,I have made some innovations and measured the level of regional economic development from four aspects.I have analyzed the influences of Korean business investment in various industries on employment quantity,employment quality,economic growth and industrial structure optimization and upgrading in Shandong Province.I have also analyzed that Korean merchants' investment in this industry is conducive to the economic development of the region from a comprehensive perspective.This text considers the rationality of Korean direct investment industry selection from many aspects,which not only has theoretical significance for studying the industrial choice of foreign-funded enterprises about the economic development of host countries,but also provides practical reference value for Shandong Province to choose Korean-funded enterprises.However,due to the difficulty of data collection,the industry categories selected in this text are only the eight industries with the largest direct investment from Korean merchants in Shandong Province without making a more detailed industrial division.Therefore,there may be some errors in the empirical test.In the future,if any scholars study this direction,they can continue to divide all industries deeply.